Gold Drops 2.5% in a Week as U.S.–Iran Talks Stall and Rattle Markets

Market Overview

Last Friday, U.S. equities pushed to fresh highs, supported by renewed expectations for U.S.–Iran negotiations, stronger-than-expected earnings from Intel, and the U.S. Department of Justice dropping its investigation into Jerome Powell. The S&P 500 rose 0.8%, while the Nasdaq Composite gained 1.6%.

However, market breadth remained weak, with gains heavily concentrated in technology and semiconductor sectors, while defensive sectors such as healthcare saw notable pullbacks.

In early Monday Asian trading, stalled U.S.–Iran negotiations over the weekend weighed on sentiment. S&P 500 and Nasdaq futures both slipped around 0.3%, while crude oil rebounded by 1.5%.

Sector BreakdownTechnology Leads While Healthcare Lags

Semiconductors remained the core driver of the rally. The Philadelphia Semiconductor Index extended its winning streak to 18 consecutive sessions, posting a weekly gain of 10.02%.

Shares of Intel surged as much as 28% intraday, while Advanced Micro Devices jumped 14%.

In contrast, the healthcare sector declined by roughly 1%. Eli Lilly fell about 4% after disappointing sales data for its new weight-loss drug.

Precious Metals and Energy

Geopolitical risk premiums drove a sharp rally in energy markets, with WTI crude oil surging 16% for the week.

Meanwhile, safe-haven assets came under pressure. Spot gold dropped 2.52% for the week, while spot silver saw a steeper decline of 6.43%.

Bonds and FX

Rate-cut expectations gained traction, pushing the 2-year U.S. Treasury yield down by 4.5 basis points in a single session.

The US Dollar Index softened slightly on the day but still posted a modest weekly gain of approximately 0.4%.

Geopolitical Risks Resurface

Stalled U.S.–Iran negotiations over the weekend reignited risk aversion in Mondays Asian session. Investors should closely monitor the potential secondary impact of geopolitical tensions on global supply chains and inflation expectations.

Key Themes AheadTrump Evacuated Amid Security Incident

At the White House Correspondents' Dinner on April 25 (local time), gunshots were reported inside the Washington Hilton shortly after Donald Trump arrived.

Over 2,000 attendees reportedly took cover as Secret Service agents swiftly evacuated the president. Trump later confirmed on social media that a suspect had been detained in connection with the incident.

Big Tech Earnings in Focus

Four major tech giants — Google, Microsoft, Meta, and Amazon — are set to report earnings simultaneously on April 30 (Beijing time).

Combined capital expenditures are approaching $600 billion, with continued heavy investment in AI infrastructure.

However, investor expectations are shifting. Markets are no longer satisfied with aggressive spending alone. Instead, focus has turned to tangible results:

• Accelerating cloud revenue growth

• Conversion of orders into actual revenue

• Sustainable profit margins

Companies that can deliver across all three fronts are likely to reinforce their market leadership.

Key Data to Watch (GMT+8)

22:30 (ET) — U.S. April Dallas Fed Manufacturing Business Index